The year after the Credit Card Act of 2009 went into effect
A)credit card balances rose.
B)late payments increased.
C)payment defaults declined.
D)there was a drop in the use of debit cards relative to credit cards.
E)a, b, and c are correct.

Question

Quizplus · Accepted Answer

The Credit Card Act of 2009 was designed to provide greater consumer protection, including limits on fees, interest rate increases, and disclosures. Its impact was found to show that credit card defaults declined after the Act, possibly due to the limit on interest rate increases preventing cardholders from accumulating large balances. However, there is no evidence to suggest that credit card balances rose or that late payments increased after the Act. The use of debit cards relative to credit cards was also not impacted, so option D is incorrect. Therefore, option C is the best choice as it reflects the positive impact of the Credit Card Act of 2009 on reducing payment defaults.

The Year After the Credit Card Act of 2009 Went